Reporting and analysis typically refer to the processes of collecting data, organizing it, and drawing insights to inform decisions. These practices are commonly used in various fields such as business, finance, marketing, operations, and many more.
Reporting:
- Income Statement (Profit and Loss): Prepare a regular income statement to assess the profitability of your business. This report shows your revenue, expenses, and profit over a given period.
- Balance Sheet: Prepare a balance sheet to assess your business’s financial position. It shows your assets, liabilities, and equity at a specific point in time.
- Custom Reports: Depending on your business, you may need other custom reports (e.g., departmental performance, inventory tracking, sales & margin analysis).
Review:
- Monthly Reviews: Perform a monthly review of your financial records, including reconciling accounts, reviewing financial reports, and making necessary adjustments.
- Quarterly and Annual Reviews: Perform more in-depth quarterly and annual reviews. This is a good time to check whether your financial goals are on track and if your accounting practices need adjustment.